The Dutch Statutory Commercial Interest
Wettelijke handelsrente can agree that it is not pleasant to have an invoice paid late, but it is even less pleasant when the money isn’t paid at all. In these cases, the law allows you to claim compensation (interest). This is called statutory commercial interest. This is a fixed interest rate that is applied to all commercial transactions, including those with public authorities.
The legal basis is Article 6:119a of the Dutch Civil Code. This clause stipulates that, if a debtor fails to fulfil his main payment obligation on time, the creditor can charge interest at a higher rate than that laid down in the contract (Clause 6:119a DCC). This applies to contracts with other businesses and with public authority organizations unless parties have explicitly agreed on a different payment term.
Decoding Statutory Commercial Interest: A Guide for Businesses
In practice, the statutory commercial interest rate is usually applied to the amount of debt due after 30 days have passed since the date of receipt of the invoice or delivery of goods or services. However, if a longer acceptance procedure is agreed upon in the contract and it is not grossly unfair to the supplier, interest will run from the end of that period.
The statutory commercial interest rate is set by the government annually. It can differ by region, so it is important to keep up-to-date on the current rate. This is a very good reason to always carefully consider payment terms when negotiating with customers and clients.
